promotional service - accounting for ongoing expense

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» promotional service - accounting for ongoing expense

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Jul 16, 2007, 11:20 AM

newbookkeeper

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Join Date: Jul 2007

Posts: 1

promotional service - accounting for ongoing expense

Hi there,

We are currently developing a new online service that
will be free for users. There is a resulting ongoing fixed
expense. We pay a similar expense for that becomes
COGS for our paid service.

Since the cost is measurable and the service is solely
for promotional purposes - can the expense go to
a sales and marketing account?

Thanks in advance.

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Jul 16, 2007, 03:35 PM	#2

CaptainForest Finance & Accounting Expert Join Date: Nov 2005 Location: Canada Posts: 3,672	Yes

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